Citi says Cabaletta views Grade 4 ICANS event as ‘potentially a one-off’

Citi notes that Cabaletta Bio disclosed a patient with lupus nephritis experienced a Grade 4 ICANS event following dosing with CABA-201 and that shares are down significantly on the news. The firm spoke with management and learned the patient had active lupus disease and a recurrent history of febrile events requiring hospitalization, noting that management’s “preliminary position is the event is potentially a one-off given the patient’s history.” However, the firm, which says it will need more data to better understand CABA-201’s safety profile, anticipates CABA-201’s safety profile and feasibility of use in autoimmune populations “will be a persistent topic of debate for investors going forward.” Citi has a Buy rating on Cabaletta shares, which are down 36% to $3.90 in afternoon trading.